HB 5688 Michigan House · 2025-2026 Regular Session

Sales tax: other; deduction or exclusion and audit of qualified delivery network sales; provide for. Amends sec. 2d of 1933 PA 167 (MCL 205.52d).

This bill modifies Michigan's sales tax rules for online marketplace facilitators, requiring them to collect and remit sales tax on all taxable sales made through their platforms regardless of whether the individual sellers have a physical presence in the state. It establishes that marketplace facilitators are responsible for auditing only their own facilitated sales unless sellers fail to provide necessary information, while also protecting facilitators from liability when sellers provide incorrect data or pay the tax directly. The legislation creates a special provision for delivery network companies, allowing them to deduct or exclude from their tax liability the sales tax they paid to marketplace sellers for qualified delivery services, such as those performed by couriers using personal vehicles or walking for distances under 75 miles.

Bill status passed both 4 of 5 stages cleared

Introduction

Mar 2026

Committee Review

Apr 2026

House Passage

Apr 2026

Senate Passage

Apr 2026

Governor

Introduced Mar 10, 2026 Last action Apr 16, 2026

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What changed between versions

House Introduced Bill → As Passed by the House · 7 edits · Apr 14, 2026

MODERATE

This bill updates Michigan's sales tax rules for online marketplaces, requiring facilitators to collect tax on all sales regardless of the seller's physical presence in the state. It introduces specific protections for marketplaces, limits on class-action lawsuits, and new rules for delivery companies to deduct taxes they already paid to sellers. The legislation also formally defines terms like 'delivery network courier' and clarifies liability for tax collection failures.

Scope change

The bill expands the scope of sales tax liability to include marketplace sellers without a physical presence in Michigan and adds specific provisions for delivery network companies involved in qualified sales.

REQUIREMENT

Marketplace facilitators must now remit sales tax on all taxable sales facilitated for sellers, even if those sellers do not have a physical presence (nexus) in Michigan.

ENFORCEMENT

The state will generally audit only the marketplace facilitator for sales made by marketplace sellers, rather than auditing individual remote sellers.

A new liability relief provision allows facilitators to avoid penalties if they can prove the seller provided incorrect or insufficient information about the sale.

A prohibition on class-action lawsuits is added to prevent multiple simultaneous claims against facilitators regarding overpaid sales tax.

DEFINITION

New definitions are established for 'delivery network company,' 'delivery network courier,' and 'qualified delivery network sale' to clarify how delivery services are taxed.

The definition of 'marketplace facilitator' is refined to exclude companies that only provide advertising or listing services without handling payments.

ELIGIBILITY

Delivery network companies may deduct the sales tax they paid to marketplace sellers from their own tax liability for specific qualified delivery sales.

Floor votes · House Apr 14, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 16, 2026

Committee

REFERRED TO COMMITTEE ON REGULATORY AFFAIRS

upper

Apr 16, 2026

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

Apr 14, 2026

Lower · Passed

passed; given immediate effect Roll Call #108 Yeas 81 Nays 23 Excused 0 Not Voting 6

lower

Mar 19, 2026

Committee

referred to second reading

lower

Mar 19, 2026

Lower · Passed

reported with recommendation without amendment

lower

Mar 10, 2026

Committee

referred to Committee on Economic Competitiveness

lower

Mar 10, 2026

Introduced

introduced by Representative Rep. Mike Hoadley

lower

1 primary · 1 co-sponsor